Hi Hitesh,
Ganesh Benzoplast has been repeatedly hitting the 52 week high. What do the charts indicate? Appreciate your views.
Thanks & regards.
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Ganesh Benzo 52 week high was 49-50 and crossing it led to a rally to current 60 plus levels. If bcos of whatever reason it comes down to the breakout levels, it can be a good level to accumulate/add. The recent QIP would act as a trend decider in the short term. My guess is if the price is lower than cmp, then we could see a short term correction and that would make it interesting.
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Ascending Triangular Pattern breakout in Shree Pushakar Chemical & Fertilizer with heavy volume.
Rational behind buying:-
- Stock making 52 week high
- Low expectations of people from company and industry & earning surprise.
- Breakout
- Overall Dye & pigment sector is in uptrend
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@hitesh2710 sir, could you explain the proper base. I read the book next apple but proper base has not been explained. Thanks
Hi @hitesh2710 ,
I have been tracking motilal oswal for sometime looking at great results every quarter for the last year. It has reached a 52 week high today. Looking at the competitors in the broking space, angel broking is giving circuits daily and is trading at double P/E, and in the amc space, have a much higher P/E (HDFC AMC). Is this the right time to invest a good amount in this company?
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Quote from the first post in this thread by @hitesh2710
“This proper base formation can take the form of flags, pennants, rounding bottoms, inverted head and shoulders, range bound movements and subsequent breakouts, double bottoms, triple bottoms, triangular or rectangular consolidations etc.”
I would suggest you to read the first post of this thread very carefully. That is almost the gist of the Next Apple book.
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Cadila is in uncharted territory after breaking all time high in April. Series of positive developments like
- Approval of Covid drug Verafin for use in moderate cases
- Indigenous Covid Vaccine ZyCov-D likely to hit the markets in June
- Selling of India Animal Health Business for Rs. 2921 Cr.
Latest financial results is yet to be released. Thanks!
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On point 2 I am not sure the timeline assumed is correct. As per below the vaccine will be launched by year end.
If at all ZycovD vaccine clears phase III trials successfully and government approves its use, the market would discount vaccine earnings six to twelve months in advance. Earnings from ZycovD could be Rs 11-12/ share x 20-25 PE gives the stock an upside of Rs 220-300 from cmp. It is most likely that government would approve its use because of the obvious.
There are different reports with different timelines, my post is based on following article where it says “Zydus Cadila likely to launch vaccine in June; efficacy data from Phase 3 trials should be in by mid-May.”
Anyways, stock market reacts based on the news, so I think the rally is justified. Thanks!
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Instead of launching own vaccine which they can continue as side job, Can they import technology/Process from Bharat Biotech and start manufacturing COVAXIN.
Question is do they have necessary infra required for it. As per my understanding CADILA has BSL 1 Lab while COVAXIN needs BSL 3. So How complex is the up gradation Can they adapt to the ocassion ?
BSL: Bio Safety Level/Lab
Disc: Invested in CADILA around 622
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Max ventures is a very interesting chart. For the sake of simplicity I have posted GMMA - guppy multiple moving averages chart. Red colored moving avgs are shorter term moving avgs (usually signifying trader mindset) ranging from 3 to 15 day simple moving avgs and blue ones are longer term (usually signifying investor mindset) ranging from 30 to 60 day sma. Stock price recently crossed pivot of 58 and went up in March 2021 and the corrected, retested the long term moving avgs and successfully reversed direction. 58 (shown in horizontal dotted blue line) remains an important pivot going ahead. (in terms of moving avg value).
Fundamentally the company has two main divisions that matter. Real estate division which is in investment phase and polyfilms division which is all important contributor to profitability. The margins in polyfilms business have been strong as evidenced by results of the polyfilm segment of SRF which has already been published.
Even a look at the kind of stocks making moves recently gives an idea that some of the so called recovery stocks like PSU banks, some financials, real estate etc seem to be gathering some steam. The stock remains under my watchlist.
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Latest Development : Company announced 50 cr capex for speciality film business
Max Film Speciality CAPEX.pdf (895.2 KB)
Excerpts:
Zydus Cadila says scaling up of manufacturing will not be a big challenge as its Covid-19 vaccine ZyCov-D is easily replicable and scalable, requiring just BSL-1, as it does not use a live virus. Covaxin, for instance, requires BSL-3 facilities.
According to GAVI, there are four categories of vaccines in clinical trials against Covid-19: virus, protein subunit, viral vector, and nucleic acid (RNA and DNA).
ZyCov-D is a “plasmid DNA” vaccine that falls under the category of ‘nucleic acid’ vaccines.
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Dr. Reddys Lab
Cup and handle formation on daily charts and price is consolidating at an ATH levels.
- Qtr YOY Sales = 7.18 % Qtr YOY Profit Var-28.6 %
- QoQ Sales-3.51 % QoQ Profits -1,897 %
As per management commentry
They are planning to file a series of injectables in the US, driving up revenue contribution from the Injectables over time. Injectables have higher margins.
Company is working on the development of new treatment options for COVID-19 patients which it aims to launch over the next few months
It earmarked a capex of around Rs 1,000 crore for the current fiscal as it remains positive about sustaining its growth trends in the current fiscal and beyond.
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Axis bank weekly GMMA chart shows a possibility of cup and handle breakout on a strong move above 750.
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